Textile export enterprises are feeling the heat of RMB appreciation as the exchange rate of US $1 is now 7.5 RMB and lowered export rebate rate to 11 percent since July.
According to Gao Hucheng, the Under Secretary of the Commercial Department, the country's textile industry earned nearly 30 percent through processing trade only 10 percent is from personal-owned brands, the remaining 60 percent is from semi-manufactured product or others. This shows the textile industry is going through changes.
It is expected that in near future, the proportion of total exports and percentage in favorable balance of exports will drop in textile and clothing sector. This will also effect the employment of this industry.
The reduced tax refund will force most medium and small sized enterprises to face the survival problem and accelerate the expanding of large corporations. For this these SMEs need to engage core techniques and exploit special fibers with high temperature durability, attrition resistance and super strength, and also export their own brand.
Fibre2fashion News Desk - China
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